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Questions related to Tax for a Newbie Landlord

Started by dj_factor, April 27, 2016, 01:31:12 PM

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dj_factor

Hello everyone, Me and My Gf had bought a property in October 2014 as an investment property. We had done repair work and put it on rent on 30th April 2015 via our local estate agent. If im not wrong, i will have to do my Tax this year. Now this is the first time we have done this so please bare with my stupid questions if i may please. Its like leading a blind man to the right way  :)

1- ) both of us work. My annual income BEfore tax is £14500 and my Gf earns £15000 before tax.
2-) The house is on rent for £ 600PCM and we both are 50% owners and the rent goes out 50% to us.
3-) we had spent about £6000 in expenses as Legal fees for solicitors and £500 in estate agent fees + usual landlord insurance, boiler/electric annual cover, carpeting the whole house, doing electrical works, boiler safety checks, miscellanious expenses on lights, paint etc. Paid the council tax, bills, water bills etc meanwhile the house wasnt let out.

Can We claim all of these back including millage etc
Is there a list of expenses we can claim back, also how do i do my 1st years tax, alot of my friends have suggested to do it myself but as its the first time, im a bit hesitant. Is it easy and what is the deadline to submit the documents, what stuff will i need.

Thanks in Advance for your help.

theangrylandlord

#1
You are not wrong you need to do a tax return for tax year 2015/16
Yes you can claim back all the things you have listed (just make sure you are comfortable nothing was an "improvement" everything is a "repair".

Yes mileage is claimable

Not sure what you mean by list ... It's stuff you have already listed

To submit a tax assessment go to the hmrc website apply for a login and password etc and go from there

It is relatively easy (I Guess that depends on your abilities ?!?)

Deadline Jan 31

Best of luck

Bigeasy

I did my first return online earlier this year and it was not too difficult if you have all the information needed to hand.
I keep a book with all my expenditure and income from rent.
Needless to say keep all your receipts for purchases like paints etc if you are doing work yourself. You can claim mileage but my understanding is that you can't claim for your own time regardless of how much time you may spend on carrying out work yourself or visits to tenants.
All invoices for work carried out by others.
P60s for your earnings and any other income.

I have attached a spreadsheet which I found online some time ago. I don't use it personally, (I have a more simple one I use) but it should give you some idea of the things which you may be able to claim tax relief on.

Good luck and don't forget to file your return on time.